Hindusthan National Glass and Industries Ltd has sent a notice of default to B9 Beverages Ltd, the manufacturer of beer under the Bira 91 brand. The company plans to transfer the debtor to the National Company Law Tribunal (NCLT).
HNGIL, which is a producer of glass packaging, issued this notification in accordance with Section 8 of the Insolvency and Bankruptcy Code (IBC). This step is mandatory before filing an application for the Corporate Insolvency Resolution Process (CIRP).
In its notice, HNGIL, acting as an operational creditor of B9 Beverages Ltd, stated the non-payment of debt and demanded reimbursement of ₹11.77 crore for glass bottles manufactured against confirmed orders that were allegedly not collected by B9 Beverages.
Last month, Bira 91 founder Ankur Jain left the board of directors and all executive positions in the parent company B9 Beverages Ltd along with his family members. This occurred after settling matters with the firm's creditors and investors, bringing an end to the company's prolonged financial crisis.
Under the provisions of the IBC, B9 Beverages has ten days from receiving the notice to make payment or settle any pre-existing dispute. Otherwise, HNGIL may approach the National Company Law Tribunal (NCLT) to initiate the corporate insolvency resolution process against this company under Section 9 of the Code.
HNGIL's Chief Strategist, Suraj Mehta, stated: 'We acknowledge that the demand for payment under the IBC was directed to Bira 91 following a legal notice sent earlier this year regarding certain commercial and contractual matters. Our position is outlined in the notice, and we are open to resolution. Since the matter is under legal review, it is inappropriate for us to make further comments at this stage.'
The dispute concerns over 51 lakh individually customized amber glass bottles with a volume of 650 ml, manufactured against three orders placed by B9 Beverages in June and September 2024. These stocks are located at HNGIL factories in Bahadurgarh in Haryana, Puducherry, and Rishra in West Bengal. The bottles bear the beverage producer's own branding and were manufactured according to their technical specifications, precluding sale to any other buyer.
The claim includes ₹7.03 crore for the cost of goods manufactured, ₹1.12 crore for storage expenses accumulated on the uncollected stock, as well as interest on both items at the contractual rate, after deducting a credit of ₹13.72 lakh held in the B9 Beverages account, as specified in the notice.
This claim followed a legal notice sent to B9 Beverages on May 6, 2026, instructing the company to repay debts and provide a clear schedule for collecting the entire stock within 15 days. According to HNGIL, neither payment nor a collection schedule was provided. Both notices were processed through the company's lawyers, Nyaayam Associates LLP.
Section 8 of the IBC allows an operational creditor who is owed money for supplied goods or services to formally demand payment of the outstanding debt from the company before approaching the tribunal. The notice emphasized that the glass bottles were custom-made for B9 Beverages' needs and were not easily marketable to third parties due to their unique characteristics. Furthermore, it was stated that the beverage producer's inability to collect the goods caused HNGIL 'serious damage and financial difficulties,' including additional warehousing costs, working capital blockage, and loss of business opportunities due to the occupation of production capacity.
In the claim, HNGIL informed B9 Beverages about the necessity to 'unconditionally repay the outstanding operational debt (in default) in full within ten days of receiving this letter,' otherwise, the Corporate Insolvency Resolution Process (CIRP) would be initiated against the company.
B9 Beverages, which sells beer under the Bira 91 brand, has not been producing products since September 2025 and is estimated to have a debt of around ₹1,000 crore. Alternative investment firm Anicut Capital, which held a lien on these shares, is reportedly leading the restructuring process alongside existing shareholders Peak XV Partners and Kirin Holdings. The proposed recapitalization aims to cover statutory obligations, employee salaries, and supplier payments before resuming operations. Some reports indicate that other companies, including Varun Beverages—the bottling partner for beverage giant PepsiCo in India and some other countries—which formed a new subsidiary KIVA Spirits, are also competing to acquire B9 Beverages.